Money, Money, Money – The power in your subscriber’s wallet
As the famous song ‘Money, Money, Money’ by Swedish pop group ABBA goes “I work all day, to pay the bills I have to pay” – today’s consumers are faced with the spiraling costs of a TV package or bundle, so it is understandable why some choose to seek alternative options. Competition has never been stronger in the TV market with many different types of TV services fighting for consumer attention and share of wallet. So how have attitudes changed to TV spending and what do customers want before considering cutting the cord?
Recent research has revealed that 26% of those who have subscribed to a new OTT service in the last 12 months have actually reduced their TV spend elsewhere by cutting other subscriptions or downgrading their general package to reduce cost. And, new analysis recently released by comScore reveals that as cord cutting continues in the US, viewers are actually consuming 60% more OTT content after cancellation.
Mike Rich, VP of Emerging Products at comScore explained “Without pay-TV competing for their attention, cord-cutters do tend to watch quite a bit more OTT content. They spend 41% more time on Netflix, 47% more time on YouTube, 45% more time on Amazon Video, and 13% more time on Hulu compared with the average OTT viewer.”
Gimme, Gimme, Gimme!
TV operators whom provide a positive customer experience can beat the odds, with a solid majority of happy subscribers willing to spend more when the quality of interactions across various providers is consistently good. 78% of consumers said that, while good content is important in choosing a digital TV service, factors such as brand reputation, flexibility, attention to customer preferences, understanding their needs and overall subscriber experience is equally crucial to keeping their business.
Knowing me, Knowing you
To stay on the right side of the TV spend equation, TV operators need to ensure they provide a consistently positive customer experience beyond just content offering and not giving their customers a reason to reduce costs in the first place.
With the ‘dip in, dip out’ approach towards TV services being so popular, operators must try harder to really understanding what their customers are looking for and being able to give them the best suggestions and service possible to avoid this happening. By giving customers what they want, whether it’s improved service, a more appropriate package, the right mix of content, pricing that fits, good communications, or a better range of options, it could mean the difference between if they stay or if they go.